BP, Total and Royal Dutch Shell are asking oilfield service companies to cut project costs by up to 40% in response to the current industry slowdown. Executives at contractors including Technip, CGGVeritas and Saipem said they responded by reducing the number of drilling rigs in operation by more than 25% and will take oilfield vessels out of service. The 64% plunge in oil from its July peak to close to $50 a barrel is deterring new investment and leaves the services industry, vulnerable as the order backlog shrinks.
